The Drama Of Nil-Paid Rights Trading

Foreword from ShareInvestor
This article “The Drama Of Nil-Paid Rights Trading” by Cai HaoXiang was first published in The Business Times on 08 Aug 2016 and is reproduced in this blog in its entirety.
Sheer volatility marks the trading of nil-paid rights, and traders have to be aware of what drives the value of …

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Mothers, Daughters, And The Noble Group Rights Issue

Foreword from ShareInvestor
This article “Mothers, Daughters, And The Noble Group Rights Issue” by Cai HaoXiang was first published in The Business Times on 01 Aug 2016 and is reproduced in this blog in its entirety.
In a two-part series, we examine three trading points around a right issue.
With an additional half a billion US …

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Is Rights Issue A No-Win Situation For Investors?

Foreword from ShareInvestor
This article “Is Right Issue A No-Win Situation For Investors?” by Mindy Tan was first published in The Business Times on 03 Oct 2011 and is reproduced in this blog in its entirety.

It depends on whether the investor is looking at it from the profit or control angle, …

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Capital Reduction And Cash Distribution

What is Capital Reduction and Cash Distribution?
Capital Reduction and Cash Distribution (also known as Return of Capital) is a return of a portion of the company’s paid-up share capital contributed by the shareholders back to the shareholders unlike regular dividend payouts which are drawn from the company’s current year profits …

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Dividend-In-Specie

Dividend-In-Specie describes the distribution of an asset in its present form, rather than selling it and distributing the cash. In-specie distribution is made when cash is not readily available, or allocating the physical asset is the better alternative.
Keppel Corp (BN4)
Keppel Corp spun off K-Green Trust on 29 Jun 2010. Keppel …

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Share Consolidations And Share Splits

What are Share Consolidations?
Share Consolidation, also known as “Reverse Stock Split”, is an exercise undertaken by the company to reduce the total number of shares in issue while simultaneously increasing the nominal or par value of each share.
In a Share Consolidation exercise, the number of consolidated shares which existing …

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Bonus Issues

What are Bonus Issues?
Bonus Issues, also known as Scrip Issue or Capitalisation Issue, are an issue of free additional shares to the existing shareholders of the company in direct proportion to their existing shareholding in the company. For instance, a 1-for-5 Bonus Issue will entitle an existing shareholder to receive …

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Special Dividends or Bonus Dividends

What are Special Dividends / Bonus Dividends?
Special Dividend (also known as Bonus Dividend) is a once-off, non-recurring cash distribution of the company’s after-tax profits to shareholders for the financial period. It is made either in addition to or at a rate higher than the company’s regular dividend distributions and hence is …

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